Ex-trader questions sentence

Lawyer seeks drop for Dynegy figure

Published 5:30 am, Tuesday, March 30, 2004

An attorney for Jamie Olis on Monday asked the federal judge who last week sentenced the former Dynegy executive to just over 24 years in prison on securities fraud and other charges to reconsider.

Olis, 38, was convicted by a jury last year on charges brought against him related to Dynegy's so-called Project Alpha deal.

Prosecutors described Alpha, a five-year deal done in 2001 involving natural gas transactions, as a loan to Dynegy that was presented to the outside world as cash brought in from energy trading.

Olis was senior director of tax planning when Alpha was done and was later promoted to vice president, finance.

Judge Sim Lake sentenced Olis to 292 months in prison. In doing so, he considered a recommendation from probation officials who, according to court documents, concluded the correct application of federal sentencing guidelines called for Olis to serve 292 months to 365 months.

Two others indicted with Olis on the same charges struck plea deals.

Their sentences are pending, and each faces a maximum of five years. One of the two was Olis' boss at the time Project Alpha was done.

"I did not represent Mr. Olis at trial. Regardless whether he could have settled this case, he now faces a 19-plus year penalty for going to trial," attorney David Gerger said in the motion filed Monday.

"We respectfully suggest that such a disparity — with his co-defendants and with others convicted of frauds — not only is too much for this case but poses a threat to the integrity of the judicial system in general."

The motion requests that Lake reconsider granting a so-called "downward departure" from the guideline range for Olis' sentence.

"I'm afraid that, if sentences become so harsh and so rigid, that even innocent people will have to give up their right to a trial," Gerger said in an interview.

Olis is planning an appeal in the case, said Gerger, who will represent Olis in that appeal.